KY HB785

Creates a new annual excise tax of $200 per acre on solar farms in Kentucky, applicable to systems with rated capacity greater than 500 kilowatts that occupy 5 or more acres of land previously used, zoned, or taxed as agricultural land within the prior 10 years

Tax rate adjusts annually beginning December 1, 2027, based on the Consumer Price Index for electricity, with the rate never decreasing below the previous year's level

First tax payment due February 1, 2027, with the tax liability falling on the solar farm owner regardless of whether they own or lease the land

All tax revenues deposited into Kentucky's rural development fund established under KRS 248.655

Violations subject to civil penalties under KRS 131.180 and interest charges, with a 4-year audit window (6 years if underreporting exceeds 25%)